According to a recent report by the Financial Times, China’s internet giants are making significant investments in high-performance Nvidia chips for their generative artificial intelligence systems. The orders are estimated to be worth $5 billion, with Baidu, Tencent, Alibaba, and ByteDance leading the race.
The report states that these companies have placed orders worth $1 billion to purchase around 100,000 A800 processors from Nvidia. These processors are expected to be delivered later this year. Additionally, Chinese groups have also made purchases of graphics processing units (GPUs) worth $4 billion, which will be delivered in 2024.
This move comes as no surprise considering the growing demand for AI technology in various sectors. Companies like Baidu and Tencent heavily rely on AI for their operations and services. By investing in high-performance Nvidia chips, they aim to enhance their AI capabilities and stay ahead of the competition.
Nvidia’s A800 processor is being offered in China to comply with export control regulations after US officials requested the company to halt exports of its main computer chips for AI-related work. This move aligns with recent restrictions imposed by the Biden administration on certain US investments in sensitive technology sectors in China.
However, Nvidia has expressed concerns about the potential impact of these export restrictions on the US industry. The company’s chief financial officer warned that such limitations could result in a permanent loss of opportunity for American businesses.
It is important to note that these investments by Chinese internet giants highlight their commitment to developing advanced AI technologies. By acquiring high-performance chips from Nvidia, they aim to strengthen their foothold in the rapidly evolving field of artificial intelligence.
As per Reuters’ request for comments from Baidu, ByteDance, Tencent, and Alibaba regarding these developments remains unanswered at present.
The brass tacks, China’s internet giants are actively pursuing high-performance Nvidia chips to power their ambitious AI projects. With orders totaling $5 billion and a focus on both processors and GPUs, these companies aim to bolster their AI capabilities and maintain a competitive edge. The impact of export restrictions on the US industry remains a concern, but for now, Chinese companies are pressing ahead with their AI ambitions.
It is rumored to be, China’s internet giants have placed orders worth $5 billion for high-performance Nvidia chips to fuel their AI ambitions (source).
